Cox, Ruben; Brounen, Dirk; Neuteboom, Peter - In: The Journal of Real Estate Finance and Economics 50 (2015) 1, pp. 74-112
This paper analyzes how financial literacy and reported willingness to take financial risk impact a household’s choice of mortgage type. The results show that households reporting higher financial literacy and lower risk aversion are 55 to 97 % more likely to opt for interest-only mortgages....